Select Page

Don't Tread On My Site

Stocks, Yields Slide As Odds Of $1+ Trillion Fiscal Stimulus Collapse

Stocks, Yields Slide As Odds Of $1+ Trillion Fiscal Stimulus Collapse
Load WordPress Sites in as fast as 37ms!

Stocks, Yields Slide As Odds Of $1+ Trillion Fiscal Stimulus Collapse

Tyler Durden

Thu, 11/12/2020 – 12:21

Having traded near sessions highs, the Emini swooned nearly 20 points lower as fiscal stimulus noise and signal returned to the forefront after Sen Mitch McConnnell spoke in the Senate and agreed that while “there should be another fiscal stimulus package,” he caveated that he was not interested in “dramatically larger” stimulus. As a reminder, one month ago, McConnell advocated for a $500BN package, while Democrats led by Nancy Pelosi argued for a 2.2TN package in earlier negotiations with the White House coming on the side of Democrats in demanding an even higher stimulus.

However, perhaps due to its bigger challenges with challenging the election outcome, the White House drive for a mega stimulus has now fizzled, with Bloomberg reporting that the Trump administration is now stepping back from stimulus talks. Previously, the administration and its Secretary of the Treasury Ben Mnuchin acted as the liaison for congressional Republicans and Democrats. The focus will now rest primarily on interactions between McConnell and Pelosi until President-Elect Joe Biden is sworn-in January 20.

According to Bloomberg, the White House move “greatly diminishes the chances of a trillion-dollar or more stimulus for the U.S. economy before January.”

The paradox in all of this is that if Trump fails to overturn the election outcome, he will hand Biden a $1.6 trillion blank check: that is how much cash is currently in the Treasury General Account which the US government could quickly distribute to the population… if it so wanted.

<!–[if IE 9]><![endif]–>

Meanwhile, as odds of a fiscal stimulus were sliding – amid fading euphoria that the Pfizer vaccine would act as a proxy stimulus as it would take much longer than the market initially expected for the vaccine to impact a majority of the population – Fed Chair Powell said that Congress and/or Fed will need to do more, suggesting that as Fiscal stimulus odds fade, monetary stimulus odds rise:


Following the news, ES dropped about 20 points but has since recovered some of the loss…

<!–[if IE 9]><![endif]–>

… while 10Y yields dropped to session lows, briefly sliding below 0.90%.

<!–[if IE 9]><![endif]–>

This post has been republished with permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.

-> Click Here to Read the Original Article <-

Advertise on Libertarian Hub

About The Author

Tyler Durden

Zero Hedge's mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information's unending quest for freedom. Visit

Leave a reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Bringing together a variety of news and information from some of today’s most important libertarian thought leaders. All feeds are checked and refreshed every hour and pages auto-refresh every 15 minutes. External images are deleted after 30 days.

Time since last refresh: 0 second

Publish Your Own Article

Follow The Libertarian Hub